Rank #1: 1331 FBF: Core Causes of Economic Crisis with William D. Cohan NY Times Bestselling Author of ‘Money and Power’ & ‘House of Cards’
Today's Flash Back Friday comes from Episode 243, originally published in February 2012.
Jason Hartman interviews author, former Wall Street senior banker, and best-selling investigative journalist, William (Bill) D. Cohan on the events that led up to the current economic crisis. Bill explains the choices that the big firms, such as Goldman Sachs, JP Morgan, etc, made regarding what type of institution they were going to be, the path of these firms that led up to the current crisis, and how they used the bailout money gifted to them. He said it was one big party on Wall Street, during which brokers were to bring in revenue using a lot of whacky products, until everything came crashing down. Huge bonuses were paid out from the revenue collected from unsuspecting clients.
Bill and Jason also discuss the Occupy Wall Street Movement. Bill expressed disappointment in the message of the movement, saying it isn’t clear and they need to learn how Wall Street really works so that they can be more effective in bringing about reform. Wall Street has been influencing what goes on in Washington and paying lobbyists and donating to congressional coffers so that they can get the regulations, or lack thereof, that they want, i.e. the Dodd-Frank Wall Street Reform and Consumer Protection Act. Bill talks about how the expansion of Wall Street into Middle Class America was not an accident, using the example of Merrill Lynch being a public company. This ultimately led to broken trust between Wall Street and Main Street, as people have now shied away from risk taking.
To solve the problems, Bill suggests changing the incentive system on Wall Street, in that it can no longer be okay to take huge risks with people’s money or get paid big bonuses whether they lose money for the firms or not, as well as going back to having to use their partner’s capital to operate. William D. Cohan offers audiences a unique, close-up perspective of the greatest financial crisis since the Great Depression. He combines deep knowledge of the investment banking world with the fine storytelling skills of an award-winning investigative journalist.
Nov 22 2019
Rank #2: 1332: FICO Scores, Florida Real Estate & Population Migration
Jason Hartman and Investment Counselor Doug takes today's episode to discuss what's going on with the average FICO score across generations. The average FICO score is not something that Americans can be proud of, but it provides some serious advantages to real estate investors.
Then Jason and Doug highlight several Florida properties that are able to cash flow with new construction, which is something that is getting harder and harder to do in today's environment. Florida is becoming a bigger draw to those running away from high tax states, which is driving their real estate market.
[2:55] FICO scores are low across all generations
[6:18] You want a good credit score, not a perfect credit score
[10:40] Real estate takes about 8% in transaction costs
[16:05] Doug spotlights a Florida property
[19:43] Blogcast: How does inflation devour debt?
[23:39] Migration of residents will cause a shift in ownership in the old areas
[26:47] Real estate markets tend to expand and contract from the top
Nov 25 2019
Rank #3: 1289: GDP & Real Estate Investing
Jason Hartman and Adamp take a deep dive into what GDP is and some of the plusses and minuses inherent to it. While breaking down a CNBC video explaining GDP they look at whether government spending should be increased, decreased, or left the same, how just because GDP is rising doesn't mean our economy is improving, and much more.
[4:33] What Jason learned from a New York City bus driver
[10:26] The CEO of WeWork has stepped down, who helped show the importance of Commandment #3
[16:06] US GDP is 38% government spending
[21:02] Importance of looking at GDP rates and inflation rates
[26:40] The important relationship between income distribution and GDP
Sep 25 2019
Rank #4: 1330: Truthteller, An Investigative Reporter’s Journey Through the World of Truth Prevention, Fake News & Conspiracy Theories by Stephen Davis
After his intro discussing getting the money thing out of the way in pursuing your life and the difference between law and ethics, Jason Hartman talks with Stephen Davis, author of Truthteller: An Investigative Reporter’s Journey Through the World of Truth Prevention, Fake News and Conspiracy Theories, about the prevalence of fake news online and in every form of media. The two try to find ways to combat the issue head on and what the average person can do today (and in the future) to avoid being fooled.
[6:34] Get the money thing out of your way
Stephen Davis Interview:
[12:32] It's easier now than ever before for governments to lie to you and get away with scandals
[14:36] Fake news travels faster than truth on Twitter
[17:40] If you want good, investigative journalism, you're going to have to pay for it
[23:45] We need to stop letting companies like Facebook and Google escape the responsibility that media outlets have
[30:10] How governments deceive you
[36:21] Dealing with fake reviews on sites
Nov 21 2019
Rank #5: 1290: New Construction Rates & Wealth Can't Wait, Avoid the 7 Wealth Traps & Miracle Morning Millionaires by David Osborn, Magnify Capital
Jason Hartman starts today's show discussing an article that explains how hard new construction starts are hitting various markets. They're down by over 80% in some markets and over 50% in a majority.
Then Jason talks with David Osborn, co-founder of Magnify Capital and best-selling author of Wealth Can't Wait: Avoid the 7 Wealth Traps, Implement the 7 Business Pillars, and Complete a Life Audit Today!, about making the conscious decision to be wealthy and how you can actually follow through on that decision while avoiding common pitfalls. They also discuss how absolutely vital the morning is to your life and how you can win the morning.
[2:44] Home building is down more than 50% since before the Great Recession
[7:32] Chicago only has about 20% of the construction they had before the Great Recession
David Osborn Interview:
[15:40] Being wealthy starts with making a choice
[19:36] The mindset is critical but often overlooked
[23:49] When you become successful you eventually just have to learn to deal with being in lawsuits
[26:58] Do NOT hire someone just because you like them
[33:49] Miracle Morning Millionaires
[35:47] By 11am the world is coming at you and you're in reaction mode
Sep 26 2019
Rank #6: 1292: Recessions, Manufacturing, Globalization & Wealth Simulations
Jason Hartman talks with Adam about the definition of a recession and what impact globalization may (or may not) have on the future of recessions. They also explore how the United States reacts to trade situations and what impact that has on markets such as the ones we invest in.
[2:55] With a recession potentially looming, you need to stress test your portfolio, which is something we'll be doing at Profits in Paradise
[8:09] Some of the old recession indicators aren't as reliable anymore because causes of GDP have shifted over the years
[10:48] A strong manufacturing base makes local economies take much longer to shift
[16:08] Why do they say that de-globalization could lead to more recessions
[19:40] It's important to look at states the same way we do countries to see which states are the friendliest to businesses
[24:41] The hidden benefits of self-management
[27:13] This year's wealth simulation will really delve into how Refi Til Ya Die really works
[26:00] The hidden benefits of self-management
[28:32] This year's wealth simulation will really delve into how Refi Til Ya Die really works
[32:54] A Baltimore, MD property available
Sep 30 2019
Rank #7: 1294: The Mystery of Capital, Why Capitalism Triumphs in the West & Fails Everywhere Else by Hernando De Soto
Jason Hartman wants to remind everyone to slow down and notice the things around you in life. Before getting to the main interview, Jason reflects on a country song he almost didn't listen to this morning and how it made him do a little introspection.
Then Jason talks with Hernando De Soto, founder and President of the Institute for Liberty and Democracy and author of The Mystery of Capital:, about the elements of capitalism that are most important and how property rights are absolutely essential. They also discuss the growing sentiment toward socialism in the United States and what impact that could have.
[6:12] Jason's lesson from a country song
[9:42] There will be an offering for tickets to the property tour on Friday before Profits in Paradise if you can only make that
Hernando de Soto Interview:
[12:56] The 5 mysteries of capital
[17:35] Capitalism is one of the few (if not only) systems that gives the lower classes a chance against the rich
[23:37] What we do as capitalists does not translate to what we do in politics
[28:11] The issue of equal opportunity for capital has to be addressed for capitalism to regain its popularity
Oct 02 2019
Rank #8: 1297: Portfolio Reviews, Cash Out Refis & HELOCs
Jason Hartman and Investment Counselor Sara talk about some of the issues that clients are dealing with and considering in today's episode. With rates as low as they've been in years and the ability to refinance or get a line of credit at reasonable rates, what is an investor to do?
[3:40] Non-refi interest rate reductions are happening, so don't be afraid to ask
[7:31] Refi a 30 year fixed rate or do a HELOC?
[12:17] A look back at "Go Zones" and what some of the problems were
[21:35] The current investor vibe
Oct 07 2019
Rank #9: 1310: Negotiation & Urban Planning by Lawrence Susskind, Havard Law School & MIT
In this off-topic 10th episode, Jason Hartman spends some time analyzing the power of the brain and what our brain does to protect ourselves and allow us to function in our day to day life. He also lays down a challenge for all listeners in order to figure out what's important to us all.
Then Jason talks with Lawrence Susskind, Ford Professor of Environmental & Urban Planning at MIT and Vice-Chair of the Program on Negotiation at Harvard Law School and author of Entrepreneurial Negotiation: Understanding and Managing The Relationships That Determine Your Entrepreneurial Success, about what urban development means in today's age and ideas coming up that can help alleviate many of our city's difficulties.
Jason and Lawrence also discuss the importance of negotiation and the mindset you must have whenever you enter into them. Many people's attitudes these days are skewed toward doing what's best for themselves, and Lawrence explains why that's wrong and why the methods we're trying to use for negotiations are all wrong.
[4:25] Always be trying to strengthen your attention muscle
[7:15] Our brains are phenomenal at denying we're going to die, which allows us to function
[13:59] Jason actually did an assignment that a professor gave in the 1988 movie Cocktail
[19:20] What if we embraced life and brought our A game every day rather than thinking death was some thing way off we don't need to worry about?
Lawrence Susskind Interview:
[24:05] The art of urban planning and its changing nature
[27:06] Cities are going through a process of change and we're likely to see big cities continuing to spread rather than becoming denser
[32:09] Some ideas for the future on how to reduce or eliminate traffic
[36:47] The single most important thing to becoming a better negotiator
[41:49] You need to know the other party's options so that you can know where you stand in negotiations
[45:42] How negotiation can make you a better leader
[50:10] We need to stop thinking that text based communication can be a way to run a business
Oct 24 2019
Rank #10: 1309: Millennial Millionaires Impact, Property Comparisons & Big City Exodus
Jason Hartman and Adam come together to discuss an article from the Drudge Report about the big cities losing workers by the hundreds, as well as a Business Insider article looking at the number of Millennial Millaires and where they're located around the country. Jason and Adam explore what these trends and stats mean to real estate values and what real estate investors can do with that information. Plus, Jason brings an unbelievable property to the show for you, what's the catch???
[2:55] Big name cities are losing people in the 150-300 per day range
[6:39] A mass exodus to rural areas needs companies to embrace 100% remote working at a higher level
[10:19] A property comparison
[17:55] Don't just pay things because someone sends you an invoice. Make sure it's legitimate and the best price possible
[24:49] Where are the Millennial Millionaires and what's their wealth worth?
Oct 23 2019
Rank #11: 1329: Jacksonville Market Profile, New Construction, 1031 Exchanges & Financial Terminology
Jason Hartman and one of the network's Florida market specialists discuss the Jacksonville market and what kind of housing is currently available. The two break down a pro forma for one of the available new construction properties and examine why Florida has become such a hot spot for people fleeing both the East and West coast states.
Then we have a segment from Real Data founder and president Frank Gallinelli about financial terminology. It's important when reading pro formas and doing your due diligence that you know what these metrics are. Frank breaks it down so that you're prepared when you go into your next property.
[4:28] Florida is now drawing people from the East and West coast
[6:28] Jacksonville market profile
[10:27] Examining a pro forma of one of the new construction properties available in Florida
[13:00] There are a couple properties available that you could take advantage of in a 1031 exchange
[15:53] People are moving to Jacksonville to be near St Augustine, which is the 2nd busiest place for tourists in Florida behind Disneyworld
[18:24] Frank Gallinelli on financial terminology
Nov 20 2019
Rank #12: 1317: Housing v Shelter, Portfolio Evaluations & Avoiding Manias
Jason Hartman and Investment Counselor Doug take a look at the danger of manias, especially when it comes to investing in startup companies (like WeWork). It's easy to get caught up in rising valuations and the like, but it's also easy to lose a whole lot doing so.
Jason and Doug then discuss the Wealth Simulation exercise that was held at Profits in Paradise, including lessons learned about the method of building your portfolio that will set you up for the greatest wealth.
[4:22] WeWork is a great example of why you should follow Commandment 21: Thou Shalt Avoid Manias
[9:17] Don't fall for the company line of how they're going to change the world. Voluntary exchange with a company changes the world on its own
[12:24] Don't be fooled by the resume or the amount of money that's being pumped into a company when making investment decisions
[13:57] Blogcast: Housing vs Shelter
[21:22] How the Wealth Simulation exercise worked
[25:23] One of the top strategies in the wealth simulation game was a mixture of linear and hybrid markets so you could take advantage of cash flow and appreciation
[31:35] You don't have to have too many properties before you're at the point where you're dealing with the law of large numbers
Nov 04 2019
Rank #13: 1286 FBF: Property Management Strategies with Mom & Drew Baker, Client Case Study, Part 1
Today's Flash Back Friday comes from Episode 951, originally published in February 2018.
It's time for Jason Hartman to have a good, old fashioned discussion on property management. This time, however, there are THREE sides at the table.
In one corner is Jason's mom, who is an EXTREME do-it-herself self-manager. In another corner is Drew, who has always been with a property management company and isn't ready to step into the self-management world. And in the final corner is Jason, with his method of a hybrid model.
Listen in as these three discuss concerns, strategies, and tips for property management, no matter which road you decide to go down.
[7:51] The hardest part of Jason's business is property management
[10:16] Drew's properties in Indianapolis were A builds, but after the Great Recession they're in C+ neighborhoods now
[13:05] Jason's hybrid self-management practice
[17:00] Where Jason's mom gets access to running credit reports and everything she needs to do to screen tenants
[21:58] The most important thing you need to communicate to your tenant about rent
[27:52] Property managers have inherent conflicts of interest
[29:48] How Joyce gets her property ready for the next tenant
[32:26] Questioning pricing can frequently lead to dramatic reductions in price
Sep 20 2019
Rank #14: 1328: Interest Rates, Financial Repression, Housing Affordability & Maker City by Peter Hirshberg
Jason Hartman starts today's show discussing how it's possible that low interest rates can be used as financial repression tool even though it seems like a good thing at first glance. He also explores an article highlighting affordability issues across the nation and how it's impacting markets that Jason's investors bought homes in prior to the runup.
Then Jason talks with Peter Hirshberg, founder of Maker City® Project and CEO and co-founder of Lighthouse.one, about Opportunity Zones and how they work with constructing cities. Jason and Peter explore how the incentives were created and why they are crucial to the success of projects like Opportunity Zones.
[3:47] Part of financial repression is low interest rates
[7:42] Affordability is becoming more and more of an issue across the US, including some where investors used to be able to get reasonable properties
[10:05] The Water Theory of money
Peter Hirshberg Interview:
[14:43] Economic reinvention is a bottom up thing as people found what they were good at and innovators moved into the city
[18:55] Why you have to create incentives like those the Opportunity Zone offers
[22:57] Why real estate matters
Nov 19 2019
Rank #15: 1306 FBF: Asset Protection, LLCs, Corps, Etc. with Rich Dad Advisor Garrett Sutton, Part 1
Today's Flash Back Friday comes from Episode 947, originally published in January 2018.
Jason Hartman wanted to make sure that the practice of asset protection is understood by every investor, because it can make or break your portfolio if done wrong.
As such, he invited Rich Dad Advisor Garrett Sutton back on the show for a long, in-depth interview. We'll finish it up tomorrow with the second half, but today the two discuss the inside/outside attack on LLCs, discuss which states have weak and strong LLC protections, and how to protect your properties properly.
[4:26] The impact of controlling the money
[7:58] How music has impacted societies around the world
[10:43] Want to go to the Icehotel in Sweden with Jason?
[13:11] The inside attack versus the outside attack
[16:54] California has the weakest asset protection laws in the union
[19:00] Why Wyoming LLCs can protect your other LLCs better than any other state
[23:34] If you have your state LLC inside a Wyoming LLC domesticated in your state, which state rules apply?
[25:44] Why is it called an "Armor 8" strategy and when is it a good choice?
[30:37] How the Wyoming LLC provided a win for a car wreck causer
Oct 18 2019
Rank #16: CW Bonus: Special Announcement, New Properties!
Jason Hartman joins Investment Counselor Sara and one of the Florida market specialists to discuss the upcoming Profits in Paradise event and the Florida property tour the Friday before the event. Prior to the Great Recession, the network dealt exclusively with new construction. Now it's a rarity, but Florida (and Atlanta) is able to provide that right now. New construction allows for win-win-win situations between investors, developers, and tenants.
Oct 06 2019
Rank #17: 1318: Important Economic Indicators, Wage Growth & Value of Mastermind Groups
Jason Hartman starts today's show discussing the importance of finding a group that brings out the best you possible. Sometimes that can cost a lot of money, sometimes it doesn't. Then Jason explores another story that illustrates the importance of Commandment #3.
Then Jason talks with Ali Wolf, Director of Economic Research at Meyers Research, LLC. Ali and Jason explore which indicators are important and which ones are just smoke and mirrors when you're examining housing markets and markets in general. No surprise, some of the big ones you hear about in the news aren't the most helpful.
[4:24] The value of a network
[6:44] Jason's gotten back into Tabatta Pro
[10:15] Under Armour is coming under investigation
Ali Wolf Interview:
[17:30] What indicators you should pay attention to and which you should ignore as an investor
[20:19] Wages in the US are going up, but wage growth minus inflation still doesn't give people a big enough raise to keep up
[24:58] Even with the bad things that are happening we're still in positive growth
Nov 05 2019
Rank #18: 1299: Value of a Dollar, Low Inflation Haunts the Fed & Property Tours
Jason Hartman discusses something he has talked about many times today, and that is the value of a dollar. To do so he breaks down a YouTube video by the Wall Street Journal that discusses inflation and what scares the Fed when it comes to it. Then Jason and Investment Counselor Carrie discuss her recent mini-property tour with investors and the upcoming property tour in Florida the day before Profits in Paradise.
[4:37] Is capital or labor more important
[7:47] Low inflation or even deflation can have disasterous consequences
[12:59] When rates are low, more people take out credit, and credit is a phantom version of money supply
[17:32] Inflation arbitrage can't last forever
Jason & Carrie:
[23:43] How Carrie's mini-property tour went
[26:50] The Refi Til Ya Die plan in today's market
[31:15] We're in an environment where you can just ask your lender for a better interest rate and it can work without a refinance
[32:27] Inventory is finally starting to pick up
Oct 09 2019
Rank #19: 1295: Home Prices, Mortgage Default Risk & Jobs Report
Jason Hartman and investment counselor Adam take a look at some good news in today's economy. Home prices are expected to continue, mortgages are safer than ever, and jobs are increasing for all. They also look at some not so good news, from foreign money leaving the economy to the high income tax state apocalypse.
[2:56] CoreLogic expects home price gains to accelerate through 2020 and mortgage rates are expected to stay below 4%
[7:53] Mortgage default risk continues to decrease
[11:43] Inflation in entertainment has been enormous, watch out for how pooled money asset companies use their money to pay for it
[17:10] The high income tax state apocalypse is underway
[21:23] Foreign money has helped push out middle class people
[27:02] Some great news on jobs
Oct 03 2019